Finding a financial adviser/asset manager

[rocks911]

I am a couple years away from retirement having served 30+ years on a Dallas suburb fire department. My wife has already left the job market (I moved her 401 into Vanguard) and in a couple of years we will both be traveling and enjoying our later years.

In addition to my wifes IRA (which she cant touch for nearly a decade) I will also have a lump sum and a 457 check that I need to invest. I have long invested myself but in retirement dont want the hassle. So how do I go about finding someone to manage my money without ripping me off?

 

[hnzw_rui]

Meh, I'd probably just use Vanguard's Financial Advisor service (0.30% AUM) if ever I get tired or become incapable of DIY.

 

[Sojourner]

I would highly recommend using the NAPFA website to locate a fee-based financial advisor. I did this several years ago and had a great experience. You may need to shop around a bit if the first one you talk to isn't a perfect fit for you, but going with a fee-based advisor is definitely the right approach. They will not try to sell you any products. They just charge an hourly fee for their advice.

Find an Advisor - Locate a Fee-Only Financial Advisor

 

[ERD50]

Most here are DIY, It really is not hard.

In fact, some of us will tell you, it is easier to DIY, than to figure out how to find someone you can trust.

Think about it - the only way to know if they are on the up-and-up is to be armed with a little knowledge. It may not seem like it to you now, but for most people, having that knowledge is all they need to do it themselves. Or as I often say:

"The hardest thing to understand about personal finance, is how simple it is". Seriously.

I've read many dozens of studies, run hundreds of simulations, and the striking this is, it probably won't make much difference what you do with your money, as long as you don't do something 'stupid'. And there is a pretty wide range of 'not stupid'.

For most people, pick an asset allocation of anywhere form 40/60 to 90/10 (or even 100/0 if you aren't afraid of volatility). Put each part in an index fund, draw what you need when you re-balance each year, and that's about it.

Ask questions here if you don't understand. No one here is asking for money, they can't rip you off, and you need to evaluate what they say, just as you would for paid advice

-ERD50

 

[hnzw_rui]

In fact, some of us will tell you, it is easier to DIY, than to figure out how to find someone you can trust.

Think about it - the only way to know if they are on the up-and-up is to be armed with a little knowledge. It may not seem like it to you now, but for most people, having that knowledge is all they need to do it themselves.

True.

For most people, pick an asset allocation of anywhere form 40/60 to 90/10 (or even 100/0 if you aren't afraid of volatility). Put each part in an index fund, draw what you need when you re-balance each year, and that's about it.

Heck, if you don't want to bother with rebalancing, you can even select a single balanced fund such as the Vanguard LifeStrategy, Target Retirement, Wellington or Wellesley Income funds. Not so ideal for strategic asset location, though.

Alas, my beneficiaries aren't interested in investing. My mom's so risk averse she has all her savings in cash (CDs and high yield money market). Even her 401k was in FDIC insured savings before I took over managing it. For them, Vanguard Personal Advisor Services will be the go-to when I kick the bucket.

 

[ERD50]

True.


Heck, if you don't want to bother with rebalancing, you can even select a single balanced fund such as the Vanguard LifeStrategy, Target Retirement, Wellington or Wellesley Income funds. Not so ideal for strategic asset location, though. ...

Yep, those will work just fine for most people.

Alas, my beneficiaries aren't interested in investing. My mom's so risk averse she has all her savings in cash (CDs and high yield money market). Even her 401k was in FDIC insured savings before I took over managing it. For them, Vanguard Personal Advisor Services will be the go-to when I kick the bucket.

Yes, I was kicking myself a bit to learn just how much of my MIL/FILs portfolio was sitting in cash. My FIL apparently used to have a lot of it at least in CDs and would go in and have them rolled over as they came due, but stopped doing that some years ago. About 40% was in the stocks they inherited (and one Vanguard growth fund they invested in in the 70's or 80's) - would not have been my choice, but they did well.

They asked to sit down with us and review everything about 5 years ago, but then it just seemed to never happen. I asked DW to bring it up, but she wouldn't. It's a shame, we could have got all their accounts simplified while they were both of sound mind and could get around easier (FIL's mental faculties started declining, and he passed away last year, MIL has mobility issues and is legally blind).

It was a lot more work to deal with after FIL passed, all these various acounts needed to first be re-titled to the EIN of his trust. A lot of running around to banks which were not very accommodating. Only then could we consolidate them. Would have been (almost) a piece of cake earlier.

-ERD50